Accounting 1

1.Do you think all variances should be investigated and reported to top management or just those that are significant and/or over budget? Why? Answer in couple sentences

2.The overall goal of variance is showing a breakdown of standard and actual costs in material and labor. The reason companies will investigate variances is to see if they are showing indication of problem areas in the company (Jiambalvo, 2020). After reviewing the readings, all variances do not need to be investigated and reported to top management. Many managers are capable of analyzing variances set at a certain amount that needs to be reviewed.

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